Healthcare Finance MHA 706 part iv questions with correct answers short and direct terms 2027 assured excel!!

Healthcare Finance MHA 706 part iv
questions with correct answers short
and direct terms 2027 assured excel!!

HEALTHCARE FINANCE EXAM REVISION MATERIAL

Insurance & Risk Concepts

1. Individuals at greater risk of needing health care are more likely to purchase insurance.

CORRECT ANSWER: Adverse Selection

Higher-risk individuals are more likely to seek insurance coverage than lower-risk
individuals.



2. The risk of overusing healthcare services because the insured does not bear the full cost is:

CORRECT ANSWER: Moral Hazard



3. The amount that must be paid out-of-pocket before insurance begins paying is:

CORRECT ANSWER: Deductible



4. Paying a percentage of healthcare expenses after the deductible is:

CORRECT ANSWER: Coinsurance



5. A fixed amount paid by the patient for a covered service is:

CORRECT ANSWER: Copayment (Copay)



Healthcare Finance Fundamentals

, 6. Healthcare Finance

CORRECT ANSWER: The practice of finance, including both accounting and financial
management, within healthcare organizations.

7. Accounting

CORRECT ANSWER: Measurement of financial events affecting resources, operations, and
financing.

8. Financial Management

CORRECT ANSWER: Provides theories, concepts, and tools needed for sound financial
decision-making.

9. Primary Role of Finance

CORRECT ANSWER: To plan for, acquire, and use resources to maximize efficiency and value.



Characteristics of a Business

10. A business:

Obtains financing from the marketplace

Uses funds to purchase assets

Operates assets to provide goods/services

Sells goods/services to generate revenue



The FOUR C's of Finance

11. Finance activities focus on:

Cost Minimization

Cash Sufficiency

Capital Access

Control of Financial Resources